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Being 67 and not broke. But, you do you.
You keep 10k in your bank and I’ll put 10k into an index fund. And in 30 years, we’ll see who’s 10K is worth more
And then you’ll be sorry
Being 67 and not having to ask your kids if you can crash at their place for 20 years bc you can’t afford life after work
Wrong place to post such an audacious idea buckaroo
Being 67 broke and needing full time assistance/care at 20k/ month
Long term care - lock it in now
You don’t want to invest in your 401k so you can have your money readily available to spend more than you would otherwise. Also, you lose your employers match so you are actually losing money. How good could you possibly be at saving money??
You never know when you might be disabled or have your health fail and be unable to work. Life expectancies are continually increasing, as are health care costs for seniors. How will you survive if you don’t have money saved for retirement?
You might live 30+ years past the time you retire. If you want assurance you can pay for that, you should plan to save 25x what you will need in annual income during retirement. If you think 100K per year will be enough, that means you’ll need $2.5 million.
If you believe you’ll be healthy and able to work until the day you die, I wish you luck, but do not envy your hubris.
If you don’t want to use a 401k cuz you think other methods are better, ok. But do save money. You may be earning less in your 20s compared to later years but you also have fewer expenses. If you think you may ever buy a house or have kids, you will be glad to have a nest egg because it is hard to downsize those monthly expenses if you have a temporary income dip.
Even if you are sure you won’t do either, you never know if health issues or an economic crisis will crop up later in life, forcing you to stop working or spend lots of money on medical bills.
You should At least put in upto the match amount as you’re leaving free $$$ on the table.
Completely agree with you OP. Enjoy your money now when you’re young and have more free time. Also the idea of retirement sounds god awful. Fifty years from now I want to be working and being useful rather than waking up at 11am to play tennis and have a brunch with my friends every day
I would not want to be working for someone at retirement age. My time with my family would trump being productive for the man.
401k is a crappy investment vehicle. Take your savings and invest in real estate and/or businesses that don’t get taxed. Taxes right now are artificially low... they will be much higher by the time you’re 67.
DD1 that’s great. My experience is more like Maverick, inverted.
I learned how to enjoy life without spending lots of cash. Use points, use projects to see cool places and eat out at nice places. Saving early has a dramatic impact on net worth over time.
I’d have to agree with you, op. The hit to the percentage of your disposable income isn’t worth it in your 20s, especially considering the trajectory of salary growth in our field. Consultants are, by nature, risk averse though.
Again, I do think your response is fair and rational. It’s true that most people won’t make partner - even so, I think exits are fairly good, and we’re all blessed with an abundance of opportunity.
You must have a really crappy 401k - I’m not turning down a matching $ for every $ I put in - that’s a 100% return just for participating
Plus it’s not taxed up front so the delay of 40 percent tax also adds to the automatic return
You should only put in enough to receive a full match. That way you don't leave money on the table. But, outside of that 401k is a poor investment vehicle.
I agree D3. Unfortunately, most people don’t make use of a 401k’s full potential thus it’s very lauded. If the dynamics of investing were fully understood by everyone then 401k would not even be in the topic of discussions as it would be a “duh you gotta take care of your retirement first before investing” moment.
Lots of folks fail to save enough for retirement ...it’s a scary thing
I encourage you to get company match and sign up for HSA both should get company matches at a certain percentage which is instant 100% gains. After that MAX out ROTH IRA which is the best investment vehicle for going long. After that index funds and your occasional optional trade if your bored with a savings account. Keep in mind interest rates are going up making savings more appealing.
Start with 5% of your salary, then every time you get a raise put half of it in. You won’t miss it and it starts to add up quickly.